Credit crunch may bite into next three years

This month the term ‘Credit Crunch’ made it into the dictionary, and it seems that this persistent financial nightmare will be continuing for some time to come. It is predicted that banks will be feeling the squeeze even by the end of 2010, and even more positive reports allow that it will take well over six months to subside.

This news comes after Alistair Darling’s assurance earlier this month that the threat of a recession in this country is unlikely, a claim which many in the financial sector disagree with. While Darling maintains that the economy ‘will continue to grow’, economists still insist that we are still on the ‘downward spiral’.

While there is no clear consensus on the projected length of the crisis, financial organisations’ end-of-year balance sheets and premiums will certainly see some disruption as the economy rebalances.

Conditions apply. Please note that repaying debt over an extended period may increase the total amount of debt to be repaid. Transferring debts to a financial management plan will affect your ability to obtain credit in the short term. Your ability to obtain credit may also be affected in the medium to long term.